Corporate Funding

If a qualifying "C" Corporation retains $50,000.00 in regular earnings or less per year and has $250.000.00 or less accumulated in it's retained earnings account it is subject to only a 15% Federal tax rate on said earnings. Anything beyond $50,000.00 per year or an accumulation of $250,000.00 in the retained earnings account, the tax bracket jumps to 33%. (see retained earnings table) The earnings amount on the accumulation also is considered in the $50,000.00 annual contribution. Therefore, anything reducing the taxable consequences in the retained earnings account can be of substantial benefit to the investing corporation. Available only to qualifying corporations is the 70% tax free dividend exclusion. If a domestic "C" corporation holds the capital stock either common or preferred of a qualifying corporation in it's retained earnings account, 70% of any dividend paid to such shareholders on said investments is received 70% tax free by the corporation holding the investment.